Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Direct Selling in Malaysia

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Executive Summary

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

PROSPECTS

Impact of goods and services tax

The Malaysian economy expanded at a more moderate rate in 2018 compared to a slowdown in 2017. However, prior to the zero-rated goods and services tax (GST), which started in June 2018, Amway and Hai-O distributors withheld their purchases and new members’ recruitment.

Positive outlook predicted for forecast period

Direct selling is predicted to record relatively conservative value growth (in both current and constant terms), posting a slow positive outlook mainly driven by stronger purchasing power, and a growing number of millennials overtaking baby boomers as the biggest spenders in Malaysia. To a large extent, intense competition from internet retailing and a wide variety of products being easily available remain major challenges.

Higher earners among ageing population pose growth opportunities

According to the latest government statistics, life expectancy of Malays has risen to 74.7 years, compared with 72.

COMPETITIVE LANDSCAPE

Amway leads highly competitive environment

Malaysia is among the largest direct selling markets in the world and fourth in Asia Pacific, according to the World Federation of Direct Selling Associations (WFDSA). Direct selling is highly competitive in Malaysia with approximately 350 direct selling companies, according to the Direct Selling Unit of the Domestic Trade, Co-operatives and Consumerism Ministry.

Hai-O embraces the internet

Hai-O is one of the leading direct selling brands in Malaysia, gaining further value share in 2018. It registered significant growth in 2017 and 2018, due to the jump in its number of distributors.

Consumer health direct selling remains popular

Apart from other direct selling, consumer health continued to be the most popular product sold through direct selling in 2018. Leading direct sellers specialised in consumer health registered positive growth and increased value share.

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